AIBU to refuse to pay cash

[cashorbanktransfer]

We have just had some decorating done. Used what appeared to be a small but reputable company. All prices/spec agreed by text.

Work is completed (fine) and now we have been asked to pay cash (several thousand pounds). We refused as the prices were not agreed for this and we have continually asked for bank details so we can pay in full.

Have now been told there is high rate interest added if work is not paid cash within one day of completion as per terms and conditions. We were obviously not told this in advance! I never asked to see terms and conditions as expected to pay in full on completion.

Can a business legally require cash without agreement in advance. Surely the only reason for cash is to avoid vat or ni or tax or something - or would there be any other reason?

Thank you

Quite aside from where you stand on the ethics of the situation, this would be quite reckless as it leaves OP without legal recourse in case of problems needing to be rectified. I would only ever agree to pay cash with contractors I already know and trust.

There are a high number of people who condone and probably practice tax evasion themselves, on Mumsnet.

She's trying to pay them! But they won't accept any of the standard payment methods.

I'd honestly expect it to be cheap as chips if they want cash payment and aren't providing a proper invoice or written guarantees.

I’d pay in cash if they wanted it but I’d still expect a proper invoice. We hate taking cash in our business as it means a separate trip to the bank to pay it in. I also don’t like card oat bets as the fees are ridiculous! Bank transfer is always welcome!

There is no way I would be helping someone to commit fraud. BACS or nothing.

I wouldn’t be happy, I like to have records of where my money has gone. As to whether the
recipient pays tax, obviously I can’t do anything about that. I’ve only paid cash once and that was £800 for kitchen fitting. He was definitely dodgy but given the cheapest other quote we could find was £3k we just turned a blind eye and gave him the cash. He was so dodgy he even managed to convince a gas man who was passing to fit the cooker for £30 as the kitchen fitter wasn’t gas safety registered. The gasman was working for an energy company so could have got in trouble himself but I didn’t care by that point, it was like a comedy sketch.

YANBU. Ask them for a copy of the invoice, and the copy of the T&C that you signed (obviously if you didn't, then they can't provide it).

Then tell them that you cannot access the cash without huge convenience to yourself and that you need a record of the payment due to the size of it, and therefore can only pay by BACS (or cheque if you have a chequebook).

Most banks charge huge fees to bank cash now, so it seems clear that they are trying to avoid banking the money. I would not be actively helping anyone to avoid paying tax on a large sum of money.

If it goes to court and you have proof that you offered to pay, then I don't see that a court would allow them to charge you interest. Plus the payment terms and interest should be detailed on the invoice. A court will not order you to pay them in cash either.

Make sure that you insist on an invoice before payment as well so that you have a record of the work done.

Those happy to pay cash are no doubt the first to complain about dilapidated health care and public services.

I think if you check the figures, the black economy (people not declaring cash transactions) accounts for about double the tax lost from non-declaration by wealthy individuals. Last report I saw was £3bn pa tax lost to cash deals as opposed to £1.5bn pa lost from wealthy individuals. Althought the amounts involved are lower, there are so many people tax dodging at lower levels that it is a huge problem.

It sounds like they are tax dodgers. I would refuse to pay cash unless they are prepared to give you a proper invoice and signed receipt, with address etc so that you have the correct paperwork if any of their work turns out to be faulty.

@LowlandLucky 'Just pay the bloody bill, you have had the work done and you are happy with it so pay. No wonder so many small businesses go under'.

The OP wants to pay. She has asked for the DD details.
The problem is that the company (appear to) want to avoid tax and NI.

It's interesting to see that quite a few posters are willing to support tax evasion of thousands (these won't be the first customers they have asked for cash). It's quite common for contractors to ask for cash so we are talking about a very large figure overall. No wonder the NHS is going under and we can't afford to fill pot holes in the roads.

There is no way I would withdraw thousands of pounds in cash to give to a trader. There's no advantage to cash vs a bank transfer unless they want to avoid a paper trial i.e. avoid tax.

@Plantstrees I am not talking about non-declaration. I am talking about R&D credits, BPR, BADR, overseas trusts, transfer pricing, EIS schemes etc etc. all perfectly legal ways for businesses and wealthy individuals to “save” tax. I’m not saying tax evasion is right, I’m just remarking that it’s always the tradesman or the benefit claimant people get up in arms about rather than the billions the government give away through means most people won’t have heard of.

And I still stand by the point it’s not the public a place to do HMRC’s job for them. By all means report them but it’s not our job to police our tradesmen run their business.

This, with bells on.

I think they were unreasonable not to make it clear but cash for contractors is common. It was a while ago but we had to pay for our extension in cash - tens of thousands! took several bank trips. Was clearly some kind of tax dodge. Luckily they did do an excellent job.

I am not refusing to pay. I have asked for bank details many times!! I would pay cash if I had agreed it in advance with receipt so I could taken the cash out in preparation in smaller amounts without trip to branch.

Am very surprised the number of people who would happily go to branch to get several thousand in my situation and also how many condone the black economy.

We were paying a high price to deal with a company, certainly not a cash in hand rate or self employed sole trader rate with less overheads/no vat.

People are very angry about the wealthy dodging tax too but it is not as if they can do anything about it!

Pay them exactly what you owe them in cash, on condition that they issue you with a receipt to confirm safe receipt of the money, on their headed paper.

Anything extra they try to charge for late payment, ignore. They will possibly threaten Small Claims Court, so it's "see you in court then".

@chisanunian

thank you so much for explaining!

There’s a difference between a cab fare for a few pounds and a bill for several thousand pounds for works in your house that you want to keep an account of!

I really don't see the problem
In paying with cash

I have always paid in cash. Any job that was done in my house. You are happy with the job, get a receipt and stop being a pain in the hole.

OP has offered a BACS payment, they want actual cash.

There is no way of knowing the trader wants to avoid VAT etc. it's like accusing someone of being a benefit thief, with no proof whatsoever.

We prefer to pay in cash, we just go to the bank and take the money out.

However in your situation it was never agreed as cash, and you clearly wanted to pay by bank transfer so I think they're being cheeky feckers tbh.